Opinion

Top Cryptocurrencies to Invest in 2021

From Ethereum and Bitcoin to Cardano and Dogecoin there are more than four thousand cryptocurrencies in the market today. This becomes very difficult for any investor beginner to expert to decide which cryptocurrency to invest in. At the time of writing the entire crypto market cap stands at $2 trillion. There are thousands of people who have jumped into the cryptocurrency bandwagon without knowing even the basics of what is cryptocurrency? let alone finding the top cryptocurrencies to invest in 2021. 

However, it is very important to have a complete knowledge of what is happening in the crypto community and which cryptocurrencies are doing great especially in 2021 where we have seen cryptocurrencies reaching their all-time high and all-time low values. 

Before we proceed to understand what are the top cryptocurrencies to invest in 2021 let us understand what is cryptocurrency in brief! 

What is cryptocurrency? 

A cryptocurrency is a virtual currency that is secured by cryptography and therefore making double-spend or false transactions impossible. Most of the cryptocurrencies run on a decentralized network called a blockchain. In today’s market, there are more than four thousand cryptocurrencies. Bitcoin was the first cryptocurrency. All other cryptocurrencies except Bitcoin are also known as altcoins. Cryptocurrency is more like a digital asset based on a distributed network. This network of blockchain is distributed over a large number of computers each having its copy of the original ledger. This decentralized structure of the nodes allows these blocks to exist outside centralized authorities. 

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Top altcoins 2021

Cryptocurrency  Rank by Market Capitalization  Market cap ATH (2021) ATL (2021) 
Ethereum (ETH) #2 $358,758,419,434 $4356.99 $730.07
Cardano (ADA)  #4 $64,922,551,419 $2.45 $0.175

Ethereum (ETH)

Ethereum was the second cryptocurrency that came into existence after Bitcoin. It is a decentralized software that enables smart contracts and decentralized applications (Dapps). The idea behind the creation of Ethereum was to create a decentralized suite for various financial products so that people across the globe can access them freely. The native token for this blockchain technology is Ether (ETH). 

Ether is similar to the vehicle that is required to move around the Ethereum network. Ether is the second-largest cryptocurrency by market capitalization. There are a lot of Dapps being built on the ethereum network.  Many NFT marketplaces use it as their backend technology. The new London hard Fork upgrade of Ethereum is playing a significant role in the recent price hikes of Ether. 

Cardano 

Cardano was created by a team of engineers, mathematicians as well as cryptographers with a research-based approach. It is an ‘Ouroboros proof-of-stake cryptocurrency. The co-founder Charles Hoskinson was also one of the founding members of Ethereum. Currently, Cardano is the fourth-largest cryptocurrency in terms of market capitalization. It is often dubbed as ‘Ethereum Killer’ since its blockchain technology is perceived to achieve more. 

The native token of this blockchain network is ADA. Get a detailed analysis of the top altcoins to invest in 2021 can be found here. 

Read in detail about the top Altcoins of  2021.

Top Defi coins 2021

Cryptocurrency  Rank by Market Capitalization  Market cap ATH (2021) ATL (2021) 
Uniswap (UNI) #12 $16,104,398,094 $44.97 $0.419
Chainlink (LINK) #15 $14,085,251,044 $52.88 $13.52

Uniswap (UNI) 

Uniswap is one of the most popular decentralized trading protocols backed by the ethereum network. It is popular for facilitating automated trading for DeFi (Decentralized finance) coins. 

Uniswap was able to create more efficiency by resolving the issues with its automated solutions thereby naturally avoiding the issues faced by the decentralized exchanges. The native token of this network is UNI. It is a governance token that gives the users the power to govern the network. 

Chainlink (LINK)

Chainlink is an abstraction layer using blockchain which connects smart contracts universally. Chainlink enables an interaction between the external data feeds, payment methods, and events with the help of a decentralized oracle network. It is one of the significant players in the data processing field. 

Being a decentralized network, the users function like node operators thereby earning revenue by running critical data infrastructure for the success of the blockchain technology running in the backend. The native token of this platform is LINK. 

Read in detail about the top DeFi coins of  2021.

Top NFT’s tokens 2021

Cryptocurrency  Rank by Market Capitalization  Market cap ATH (2021) ATL (2021) 
Theta (THETA) #23 $6,706,452,632 $15.90 $1.94
Decentraland (MANA) #71 $1,377,823,286 $1.63 $0.076

Theta

Theta is a blockchain network that was exclusively built for video streaming purposes. It came into existence in the year 2019 and today it operates as a decentralized network wherein users share their bandwidth and other computing resources on a P2P (peer-to-peer) basis. 

The native NFT token of Theta is THETA which conducts the governance tasks across the network. Developers believe that this network has the potential to shake up the current video-streaming industry for good. 

Decentraland 

Decentraland calls itself a virtual reality platform. It is backed by the ethereum network allowing users to create, monetize and experience a plethora of applications as well as the content. In this virtual land of Decentraland users can purchase their virtual lands, build upon as well as earn money through them. There are two NFT tokens of decentraland MANA and LAND. An ERC-20 token MANA is burnt to acquire LAND tokens that are ERC-721 tokens. MANA is used to buy the avatars and other NFTs on Decentraland. 

Read in detail about the top NFT tokens of  2021.

Top smart contract tokens

Cryptocurrency  Rank by Marketcapitalization  Market cap ATH (2021) ATL (2021) 
Stellar (XLM) #20 $8,172,829,753 $0.789 $0.126
Ethereum Classic (ETC) #21 $7,979,605,596 $176.16 $6.27

Stellar (XLM) 

Stellar is nothing but an open network that allows transaction and storage of money. The goal with which stellar was born was to help the ones who are unbanked however later its objective shifted to helping financial firms connect with each other with the help of blockchain technology. 

The native token of the network is Lumens (XLM), which allows trading assets across the borders with nominal fees. Every transaction costs only 0.00001 XLM which is way too low when compared to the fees charged by payments giants today. 

Ethereum Classic (ETC) 

Ethereum Classic is a hard fork of the ethereum network which came into existence in 2016. The main function of ethereum classic as a smart contract network is the facilitation of decentralized apps (Dapps). the native token of this smart contract token is ETC. 

Since its inception, this smart contract token has always differentiated itself from the parent network ethereum. The technical roadmap followed by both these tokens is diverging ever since then. 

Read in detail about the top smart contract tokens of  2021.

Top cryptocurrencies that touched ATH in 2021

Cryptocurrency  Rank by Market Capitalization  Market cap ATH (2021) ATL (2021) 
Binance coin (BNB) #3 $67,097,333,287 $690.93 $37.17
Dogecoin (DOGE)  #7 $39,148,979,319 $0.7 $0.006

Binance Coin (BNB) 

When it comes to cryptocurrency, everyone is familiar with the name of Binance, one of the world’s biggest cryptocurrency exchanges. This crypto exchange aims to bring the cryptocurrency exchanges like itself to the mainstream. Apart from just being a crypto exchange, it has launched several features creating an entire ecosystem for its users. There are different ventures under Binabce such as Binance Chain, Trusted wallet, the academy as well as research projects. All these have one goal in common that is to empower blockchain technology and bring a new age of development in the field of finance. 

Binance coin (BNB) is an integral part of this ecosystem. It is currently the world’s third-largest cryptocurrency by market capitalization. On May 10th, 2021 it touched its all-time high price of $690.93. 

Dogecoin (DOGE) 

Dogecoin is a meme coin that features a Shiba Inu as its logo. Although it started as a meme coin but is currently the seventh-largest cryptocurrency in terms of market capitalization. It was forked from Litecoin in 2013. The CEO of Tesla, Elon Musk is often found tweeting about this coin which at times defines its movement. 

Dogecoin reached its all-time high on May 2021 at $0.7. There are anticipations around it that it might reach $1 by the end of this year. Although price predictions vary from time to time many experts have confirmed this fact. 

Summing it Up! 

With more than 4000 cryptocurrencies flowing in the market it gets overwhelming for any investor and trader to decide their next move. However, it is always advised to have the facts and information together before starting any investments.  Different blockchain networks have different utilities and these functionalities decide the worth of their native tokens along with human sentiments. 

The top cryptocurrencies to invest in 2021 have been listed above based on their ranks, market capitalization, and the values they have achieved in the past eight months of 2021. Despite all the volatility bitcoin value did see its all-time high while the altcoins are also trading in the green after a long wait of three months. Read how the crypto market cap touches $2 trillion after a long dip in prices for three months as bitcoin value surges to $46,000. 

Stay updated with the latest developments around the crypto world with CoinDCX, India’s largest crypto exchange. Still, confused about the blockchain jargon? Seek help from DCXLearn, a free and complete course on blockchain and cryptocurrency. Start investing today with CoinDCX, India’s simplest and easiest investment app. Start your crypto journey today!


Disclaimer: It is advisable to dive into an investment after conducting thorough research. The article is not aimed at any financial advice. *All prices are as of October 25th, 2021.


 

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